In today’s briefing:
- HSTECH Index Rebalance Preview: Tongcheng Travel (780 HK) Could Replace Ming Yuan Cloud (909 HK)
- TOPIX Inclusions: Who Is Ready (Dec 2022)
- Salesforce Inc: New Real-Time CRM Platform & Other Drivers
- Synopsys Inc: Collaboration With SiFive & Other Drivers
- CrowdStrike Inc: Major Drivers
- Zscaler Inc: Zero Configuration Data Protection & Other Developments
- Hewlett Packard Enterprises: New Product Launches & Other Drivers
- Marvell Technologies: New Product Launch & Other Drivers
- Workday Inc: Cloud Transition Collaboration With KPMG & Other Drivers
- NetApp Inc: The BlueXP Launch & Other Drivers
HSTECH Index Rebalance Preview: Tongcheng Travel (780 HK) Could Replace Ming Yuan Cloud (909 HK)
- Tongcheng-Elong Holdings Ltd (780 HK) could replace Ming Yuan Cloud Group (909 HK) in the Hang Seng Tech Index (HSTECH INDEX) at the March rebalance.
- One way turnover is estimated at 2.1% resulting in a one-way trade of HK$1.7bn. Passive trackers will need to buy nearly 10x ADV on Tongcheng-Elong Holdings Ltd (780 HK).
- After being deleted from the MSCI China Index at the November SAIR, this could be the next major index deletion for Ming Yuan Cloud Group (909 HK).
TOPIX Inclusions: Who Is Ready (Dec 2022)
- Quiddity’s “Who is Ready” series of insights aims to objectively identify names listed on the Tokyo Stock Exchange that are potential additions to the TOPIX Index in future.
- This insight is a follow-up to TOPIX Inclusions: Who Is Ready (Oct 2022)
- At present, there are 60 names that satisfy all of these conditions and there are more names that are close to being in that group.
Salesforce Inc: New Real-Time CRM Platform & Other Drivers
- Salesforce’s stock has been badly hit by the general bearishness in the markets towards tech stocks and is trading at a low.
- However, the company’s results were decent as it delivered strong sales growth and profitability surpassing Wall Street expectations on all fronts.
- This quarter, the ARR increased by more than 50% in seven of their 13 industry clouds.
Synopsys Inc: Collaboration With SiFive & Other Drivers
- Synopsys ended the year with a decent result meeting the revenue expectations of Wall Street and managing an earnings beat.
- The company reached the $5 billion yearly revenue milestone during this quarter as they extended customer relationships and altered their product lineup in order to sharpen their competitive edge.
- Despite a slowdown in revenue growth for the semiconductor business, design activity is still strong.
CrowdStrike Inc: Major Drivers
- CrowdStrike had a solid quarter increasing its revenue by 53% year-over-year, surpassing Wall Street expectations.
- In the enterprise, sales cycles or average days to closure remain marginally higher than the previous quarter.
- Furthermore, LogScale experienced another solid quarter in Q3 thanks to their wins in the financial services, insurance, technology, retail, energy, and telecommunications industries.
Zscaler Inc: Zero Configuration Data Protection & Other Developments
- Zscaler delivered good results in the last quarter surpassing Wall Street expectations in terms of revenues as well as earnings.
- Consumers are buying Zscaler for users, its complete platform for user protection, including ZDX, ZPA, and ZIA bundled together.
- We provide the stock of Zscaler a ‘Buy’ rating and a revision in the target price.
Hewlett Packard Enterprises: New Product Launches & Other Drivers
- Hewlett Packard Enterprises had a decent fourth quarter as its revenues managed to surpass Wall Street expectations and strong quarterly free cash flow.
- The company managed to meet Wall Street expectations with respect to earnings.
- We remain neutral on Hewlett Packard Enterprises and maintain our ‘Hold’ rating with a revised target price.
Marvell Technologies: New Product Launch & Other Drivers
- In the last quarter, Marvell delivered a disappointing result as its revenues and earnings failed to meet Wall Street expectations.
- The company’s top-line continues to be driven by its auto, 5G, and cloud businesses.
- On a sequential basis, the data center revenue of the company declined because of softness in its on-premise business.
Workday Inc: Cloud Transition Collaboration With KPMG & Other Drivers
- Workday delivered another solid quarter and managed an all around beat.
- The company’s APA won over a number of clients, including Trip.com, Fletcher Building, Bank of Queensland, and a pharmaceutical company.
- During the quarter, they also disclosed their collaboration with KPMG to launch Industry Accelerators in two important corporations, including banking and healthcare, based on their Industry Accelerator program.
NetApp Inc: The BlueXP Launch & Other Drivers
- NetApp generated a mixed set of results for the last quarter as it failed to meet Wall Street expectations with respect to revenues and billings but managed an earnings beat.
- It is evident that their cloud services’ growth has slowed down.
- Besides, they have significantly adjusted their revenue projection for the remaining months of the fiscal year in light of impending economic headwinds.
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